Mumbai: The Bombay High Court has said that Mumbai International Airport Ltd (MIAL) cannot demand a share in the income of the airline operators under the pretext of recovering the airport levy.
The court made the observation while responding to a writ petition filed by Federation of Indian Airlines (FIA) against MIAL's move to charge 13% on 'selling price' of food items by airlines against the current practice to charge it on 'cost price'. FIA is an association of airlines including GoAir, IndiGo and SpiceJet.
MIAL, on the other hand, has maintained that the levies sought by it are within the power granted to it under the law. Airline officials refused to comment on the observations made by the court. The court on Friday observed that the airlines operate under licence from aviation regulator Directorate General of Civil Aviation (DGCA) and may or may not be making a profit. MIAL, which has been tasked with the modernisation of city's Chhatrapati Shivaji International Airport (CSIA), cannot expect itself to be compensated or reimbursed for the entire or substantial expenditure amount spent by it.
"It is not as if the passengers or airlines are making demand from them and continuously. The passengers and the airline operators hitherto and even now will be expecting all basic amenities and facilities. If second respondent (MIAL) desired to extend comfort and luxuries and by utilising state-of-the-art technology in upgrading the airport it cannot expect, much less, demand a share in the income or profits generated by the airline companies," the court said.
05/09/16 Shahkar Abidi/DNA
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The court made the observation while responding to a writ petition filed by Federation of Indian Airlines (FIA) against MIAL's move to charge 13% on 'selling price' of food items by airlines against the current practice to charge it on 'cost price'. FIA is an association of airlines including GoAir, IndiGo and SpiceJet.
MIAL, on the other hand, has maintained that the levies sought by it are within the power granted to it under the law. Airline officials refused to comment on the observations made by the court. The court on Friday observed that the airlines operate under licence from aviation regulator Directorate General of Civil Aviation (DGCA) and may or may not be making a profit. MIAL, which has been tasked with the modernisation of city's Chhatrapati Shivaji International Airport (CSIA), cannot expect itself to be compensated or reimbursed for the entire or substantial expenditure amount spent by it.
"It is not as if the passengers or airlines are making demand from them and continuously. The passengers and the airline operators hitherto and even now will be expecting all basic amenities and facilities. If second respondent (MIAL) desired to extend comfort and luxuries and by utilising state-of-the-art technology in upgrading the airport it cannot expect, much less, demand a share in the income or profits generated by the airline companies," the court said.
05/09/16 Shahkar Abidi/DNA
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